Energy & Technology

KUALA LUMPUR: Vessel fuel management solutions provider Fueltrax recently signed 28 high-value contracts in Malaysia, totalling RM24 million, the company’s significant achievement in Southeast Asia. The deal is a positive milestone for Fueltrax in Southeast Asia, showcasing the company’s commitment to driving advancements and economic growth within the region’s maritime industry. Of these contracts, 12 vessel operators have integrated their marine operations data through FuelNettm, Fueltrax’s with Malaysian oil and gas companies involving 38 vessels. This integration utilises FuelNettm’s cloud-based platform, offering real-time data and insights into fuel consumption, efficiency, and environmental compliance. “Our accomplishments highlight our steadfast dedication to drive operational efficiency, sustainability, and economic prosperity throughout the region. “As the foremost brand for vessel fuel management system (VFMS) globally, with extensive experience managing over 1,000 vessels globally, including 38 in Malaysia, we are dedicated to providing world-class equipment, reliable technical support, and cost-effective solutions,” Fueltrax director of operations in Southeast Asia Faiz Azani said in a statement. Implementing Fueltrax’s VFMS across these 38 Malaysian fleets is expected to yield significant benefits. This investment is projected to enhance overall operational efficiency and productivity by 30 per cent, directly impacting the bottom line of Malaysian vessel operators and companies. Additionally, VFMS facilitates real-time data analysis and streamlined workflows, enabling faster and more informed decision-making. This combination of increased efficiency and better decision-making contributes to the long-term viability of the Malaysian maritime industry, positioning it for continued growth and competitiveness in the global market. “Fueltrax aims to contribute to Malaysia’s development as a leading maritime hub by promoting responsible fuel management practices. “Hence, any investors planning to have any marine business in this sector will have high confidence that value losses in poor fuel costs will impact their business cost less,” added Faiz. “These collaborations are expected to create significant economic benefits for the Malaysian maritime industry, including creating at least 100 new jobs. “These positions arise not only among companies directly involved in the contracts but across the supply chain and associated support functions, further increasing the industry’s growth and efficiency,” he said. Each comprehensive package of Fueltrax’s solutions is tailored to meet client needs, including data monitoring, support services, equipment maintenance, and efficiency enhancements. These solutions empower vessel operators to digitalise operations, optimise fuel usage, and reduce their carbon footprint through advanced fuel management technology. Features like BestSpeed and BestEconomy maximise vessel speed with minimal fuel, promoting efficient and responsible crew behaviour. Building upon its strong track record in Southeast Asia, Fueltrax previously secured contracts with ten leading vessel companies between 2017 and 2022. These partnerships solidified Fueltrax’s reputation for delivering innovative solutions and exceptional regional service. Fueltrax’s solutions align with the International Maritime Organization’s (IMO) 2050 strategy for decarbonisation, empowering vessel operators to contribute to a cleaner and more sustainable maritime future. With this success as a foundation, Fueltrax plans for further growth and expansion in Malaysia, including establishing a second Vessel Operation Center (VOC) to provide 24/7 support to clients globally.

KUALA LUMPUR: Pure play enterprise Internet of Things (IoT) solutions provider SMRT Holdings Bhd’s wholly-owned indirect subsidiary, N’osairis Technology Solutions Inc (NTSI), obtained a letter of offer from Pito AxM Platform Inc (PAPI) for the deployment of managed automated teller machine (ATM) infrastructure solution across designated ATM sites in Luzon, the Philippines. Under the offer, SMRT will deploy its IoT solutions at ATM sites designated by PAPI by the end of 2024. Following the deployment, SMRT will manage the sites’ network infrastructure for three years, commencing from the installation date of each site. SMRT group managing director Maha Palan said that by building on its success in the Indonesian market, the company has successfully penetrated the Philippines market with this project. “This is indeed a major milestone for SMRT. We will further grow our recurring income base with the additional sites we manage. Currently, more than 50 per cent of our revenue stems from recurring sources,” he said in a statement. PAPI is a fully owned subsidiary of Seven Bank Ltd, a Japanese bank and leading global ATM network and financial service provider with some 27,000 and 17,000 ATMs installed in Japan and outside Japan, respectively. PAPI, incorporated in the Philippines in 2019, focuses on offering ATM services such as balance inquiry, cash withdrawals, and deposits for its customers in the Philippines market. “As we expand our footprint into the Philippines, we can replicate our proven business model in other potential markets across ASEAN. “On balance, we remain confident in our current growth strategy and are committed to our goal of being the region’s leading provider of comprehensive end-to-end IoT services,” Maha Palan said.

KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM13.39 million in the second quarter (Q2) ended December 31, 2023 (FY24), up 59 per cent from RM8.41 million in the same quarter last year. Revenue rose 21 per cent year-on-year (YoY) to RM64.76 million in Q2 from RM53.48 million a year ago. In Q2 FY24, PGB’s revenue was driven by demand for upholstery car seat covers, the sewing and supply of covers for car accessories, and wrapping and stitching services. These subsegments each contributed about 90 per cent, 5 per cent and 3 per cent of PGB’s total revenue, respectively. The original equipment manufacturer (OEM) upholstery car seat segment contributed about 89 per cent of the total revenue for car seat covers, while the replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments contributed about 3 per cent and 8 per cent, respectively. PGB’s net profit margin for Q2 was 20.7 per cent, a 32 per cent increase from Q2 FY23. PGB’s profitability improved due to enhanced cost efficiency, with the company’s production facilities benefiting from better economies of scale. Chief executive officer Foo Ken Nee said the Q2 earnings reflect the company’s commitment to sustained business growth. He said this marks the sixth consecutive quarter where PGB set a new net profit record. “Our cash position also rose to RM138.96 million as of Q2 FY24, up 24.9 per cent from RM111.23 million in FY23. “Our robust financial strength will give us the firepower to accelerate our diversification into new markets,” he said in a statement. Foo said the outlook for automotive total industry volume (TIV) in Malaysia continues to be resilient. “We are well-positioned to capitalise on this momentum, with our focus on productivity, cost efficiency and optimal procurement strategy,” he said. Executive director Teoh Zi Yi said that moving forward, PGB is banking on its aviation division to unlock the next growth phase. “We will continue to work toward building a strong and stable customer base in the aviation industry, tapping the capabilities and networks of our industry partners. “Last week, we formalised a strategic partnership with Global Component Asia Sdn Bhd (GCA) at the Singapore Airshow 2024. “This partnership will allow PGB’s subsidiary Pecca Aviation Sdn Bhd to deliver aircraft interior solutions to GCA’s roster of prominent aviation customers, including airlines and maintenance, repair, and operations (MRO) players from key markets around the world. “With the global air travel industry having staged a near-complete recovery, we believe we can achieve higher profit contributions from this business,” he said.

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) recorded revenue of RM28.7 billion for the full year ended December 31, 2023 (FY23), a marginal decline against RM29.0 billion posted in FY22 amidst a challenging year for the global chemical industry. In a statement, the company said the moderating economic growth and slower-than-anticipated recovery in China weighed in on the industry, leading to lower product demand and softening prices. Concurrently, geopolitical tensions kept energy prices high, resulting in higher feedstock costs and margin compression. PCG registered a net profit of RM1.8 billion, declining against RM6.3 billion in FY22. Plant utilisation was recorded at 85 per cent compared to the previous year’s 89 per cent in the face of operational challenges, as well as several statutory turnarounds and maintenance activities undertaken during the year. In the fourth quarter (Q4) of FY23, revenue improved by 6 per cent quarter-to-quarter (QoQ) to RM7.2 billion on higher production and sales volumes. However, net profit for Q4 declined to RM142 million on lower product spreads and higher energy and utilities costs. PCG announced a second interim dividend payout of 5 sen per share, amounting to RM400 million. The total dividend declared in FY23 amounts to RM1.0 billion, representing 61.3 per cent of the net profit. PCG managing director and chief executive officer Mazuin Ismail said FY23 was a challenging year for the company, both on the market and operational fronts. “As we navigated a very volatile chemicals market throughout the year, internally, we faced interruptions at a few of our plants, which led to a weaker performance in our olefins and derivatives (O&D) and fertilisers and methanol (F&M) segments. “Simultaneously, the specialties segment continued to be impacted by prolonged destocking and intensified competition from Chinese producers. “Despite the persistent low spreads and operational challenges, we remain resilient with a healthy financial position, enabling us to exceed our commitment to our shareholders,” Mazuin said in a statement. On the chemicals market outlook, he said, the challenges seen in 2023 are expected to continue into 2024 as economic recovery is expected to remain sluggish but with pockets of opportunities in various sectors. “Ethylene prices should see some support later in the year as consumption improves and drives the demand for polyethylene in packaging applications. “On the F&M side, urea prices are expected to be stable, supported by planting season in India and the continued ban on urea exports from China. “Methanol prices may ease as downstream demand is expected to remain soft, likewise for specialty chemicals,” Mazuin said. He said the chemicals industry is cyclical, and PCG expects the current downcycle will turn around as demand catches up with supply. “We have successfully resolved most of our operational challenges and are strategically positioning ourselves to seize opportunities as the market rebounds,” he said further. On growth projects, Mazuin stated that performance test runs are ongoing at the petrochemical facilities in Pengerang. “We are also looking forward to achieving commercial operations at other new plants this year, namely the melamine plant in Gurun, Kedah, the specialty chemicals plant in Sayakha, India, for the production of pentaerythritol and calcium formate, as well as the expansion of the 2-Ethylhexanoic Acid (2-EHA) plant in Gebeng, Pahang, through our joint venture (JV) company, BASF Petronas Chemicals. “These three facilities, with a combined annual capacity of about 130,000 metric tonnes per annum, mark several milestones in our 2-pronged strategy towards achieving sustainable growth,” he said.

KUALA LUMPUR: UEM Group Bhd’s subsidiary Cenergi SEA Bhd has signed a 21-year renewable energy virtual power purchase agreement (VPPA) with China-based GDS Holdings Ltd, a leading developer and operator of high-performance data centres in Asia. The agreement positions GDS among the first cohort of green power off-takers in Malaysia under the Corporate Green Power Program (CGPP), which Malaysia’s Energy Commission administers. The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate off-takers in Peninsula Malaysia. GDS has subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Center Campus in Johor. The partnership with Cenergi empowers GDS to claim renewable energy credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving net-zero carbon emissions by 2030. The renewable energy procured through this agreement will be supplied by Cenergi’s 29.99MWac large-scale solar photovoltaic farm in Kedah will be operational by the fourth quarter Q4) of 2025. Cenergi group chief executive officer Hairol Azizi Tajudin said the company looks forward to a stronger partnership with GDS in Malaysia’s renewable energy journey. “This collaboration underlines our dedication to sustainability and fits perfectly with our goal of promoting renewable energy projects. “By supplying GDS with green electricity from our upcoming solar farm, we are not just helping them reach their net-zero emissions target but also contributing to Malaysia’s larger plan for a greener energy mix. “We believe in the positive impact of such partnerships in creating a more sustainable future for all,” he said in a statement. Synergy is Malaysia’s largest biogas player, solar power producer and diversified renewable energy developer, specialising in reducing carbon emissions by developing and investing in renewable energy and energy efficiency projects, making it a well-suited collaborator for GDS’s sustainability initiatives. Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes’ electricity use for one year. Combined with GDS’s existing green direct current (DC) technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage. GDS chief executive officer William Huang said collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies the company’s commitment to fostering sustainability within the industry. “As a first mover in Johor with our Nusajaya Tech Park Data Center Campus and various ongoing projects, this endeavour signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid. “This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector,” he said. The renewable energy procured from Cenergi’s solar farm will also support Malaysia’s goal of having 31 per cent renewable energy in its national energy mix by 2025, as outlined in the National Energy Transition Roadmap (NETR).

KUALA LUMPUR: Leading oil and gas (O&G) services provider Deleum Bhd posted a net profit of RM45.7 million for the financial year ended December 31, 2023 (FY23) from RM 42.1 million last year. The net profit increased marginally due to higher income tax expenses and non-controlling interests. The company’s revenue increased 13.5 per cent in FY23 to RM792.0 million from RM698.0 million the previous year, driven primarily by a strong revenue contribution from the power and machinery segment, which generated RM668.0 million for the year. Pre-tax profit grew 25.1 per cent to RM84.9 million for FY23 from RM67.9 million previously, in tandem with an increase in group revenue. Group chief executive officer Rao Abdullah said the company’s strategic initiatives yielded another year of solid financial performance. “We have plans lined up for FY24 to accelerate growth and strengthen our position in the industry. “Our commitment to fostering growth and creating value for all stakeholders is unchanged. We are committed to capitalising on new opportunities, optimising our resources, and encouraging innovation to propel Deleum to greater success,” he said in a statement. Alongside the sturdy financial performance, the company declared a second interim single-tier dividend of 3.70 sen per share in respect of FY23, payable on March 29, 2024. With the first interim single-tier dividend of 2.00 sen paid on September 29,  2023, Deleum declared a total dividend of 5.70 sen per share for FY23. A dividend payout of RM22.9 million represents 50.0 per cent of FY23 net profit. Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As of FY23, Deleum’s net cash position has further strengthened, with cash and bank balances of RM215.9 million exceeding total borrowings of RM2.4 million, compared to RM178.0 million and RM8.8 million on December 31, 2022, respectively. Shareholders’ equity increased to RM413.4 million as of December 31, 2023, up from RM388.8 million as of December 31, 2022. The company’s firm orderbook currently stands at RM552.6 million, consisting of works and equipment to be delivered within the next 24 months.

KUALA LUMPUR: Pecca Group Bhd’s (PGB) wholly-owned subsidiary Pecca Aviation Services Sdn Bhd (PASSB) has signed a distribution agreement and an agency agreement with Global Component Asia Sdn Bhd (GCA) in establishing a strategic partnership that will elevate the standard of aircraft interior maintenance, repair, and operations (MRO) in key global markets. The agreements build on PASSB and GCA’s memorandum of understanding (MoU) signed in May 2023, where both parties agreed to engage in joint marketing efforts to promote PGB’s aircraft seat cover solutions for global civil and defence markets. The partnership will see PASSB delivering aircraft interior solutions to GCA’s roster of prominent aviation customers which includes airlines and MRO players. PASSB and GCA will work together to serve key markets including Malaysia, France, the United States of America, the United Kingdom, and Indonesia. By strategically targeting these regions, GCA and Pecca Aviation aim to offer comprehensive aviation interior solutions to a diverse range of clients, enhancing the overall flying experience for passengers and optimising operational efficiency for airline operators. PGB executive director Teoh Zi Yi said the partnership with GCA will accelerate the global expansion of PASSB. “Our shared commitment to innovation and quality will enable us to deliver exceptional results for aviation players across Malaysia, France, the United States of America, the United Kingdom, and Indonesia,” he said in a statement. The signing ceremony was held at the Singapore Airshow 2024, witnessed by Malaysia’s Ministry of Defence deputy secretary general (policy) Mohd Yani Daud, the High Commissioner of Malaysia to Singapore Datuk Dr Azfar Mohamad Mustafar, and the National Aerospace Industry Corporation Malaysia (NAICO Malaysia) chief executive officer professor technologist Shamsul Kamar Abu Samah. GCA chairwoman Datuk Nonee Ashirin said this collaboration with PASSB represents a significant step forward in the company’s commitment to providing top-tier aviation solutions. “With their proven track record and expertise in the industry, we are confident that together, we will set new standards for aircraft interior excellence,” she said. Listed on Bursa Malaysia, PGB has been involved in the upholstery industry for over 25 years. The company is a one-stop centre for styling, manufacturing, distributing, and installing upholstery for seat covers and interior products for a global customer base, including Toyota and Nissan. In Malaysia, PGB is the largest leather upholstery supplier serving the automotive market. Shamsul Kamar said the partnership marks a pivotal moment for Malaysia’s aerospace industry and drive towards the objectives outlined in the Malaysia Aerospace Industry Blueprint 2030. “This momentous occasion signifies a significant leap forward for Malaysia’s aerospace industry and heralds a new era of collaboration, innovation, and prosperity,” he said.

KUALA LUMPUR: Telekom Malaysia Bhd (TM) posted a higher revenue of RM12.26 billion for the financial year ended December 31, 2023 (FY23) from RM12.1 billion posted in FY22, propelled by the strong performance of Unifi and TM Global. Specifically, Unifi’s fixed broadband subscriptions experienced a 3.1 per cent growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services. The group’s earnings before interest and tax (EBIT) remained flat at RM2.09 billion in FY23 due to higher operational costs. Meanwhile, the group’s net profit rose 63.6 per cent from RM1.14 billion to RM1.87 billion due to a lower net finance cost and tax impact. Capital expenditure (CAPEX) in FY23 stood at RM1.9 billion, or 15.9 per cent of its revenue. These investments aimed to expand the group’s network infrastructure nationwide and regional submarine cable system. TM declared a 2nd interim dividend and final dividend totalling 15.5 sen per share, amounting to approximately RM594.9 million, demonstrating its commitment to delivering shareholder value. TM group chief executive officer Amar Huzaimi Md Deris said TM has sustained its performance amidst challenging regulatory landscapes, heightened competition, and evolving market dynamics. “Our convergence solutions, paired with attractive packages, have continued to appeal to our customers, reinforcing our position as the only fixed-mobile convergence with quad-play in Malaysia. “The ongoing expansion of our nationwide fibre coverage and enhancing our data and network infrastructure have also contributed to our growth. “We remain committed to promoting digital inclusivity and wider digital adoption while addressing the evolving needs of our domestic and international customers,” said Amar in a statement. He said 2023 marked the completion of TM’s initial three-year transformation phase, during which the group further solidified its position in the local and global telecommunication landscape. “Advancing into the next level of our transformation journey, we are now focused on evolving into a Digital Powerhouse by 2030, while positioning Malaysia as a digital hub for the region. “Our commitment aligns with the nation’s aspiration of becoming a fully integrated digital society, ensuring that we continue to play a key role in the era of digital innovation,” Amar said. Unifi maintains its leadership in converged offerings of fixed broadband, mobile services, digital content and solutions for consumers and micro, small and medium enterprises (MSMEs), recording RM5.66 billion in revenue. Unifi’s fixed broadband segment grew 3.1 per cent to 3.13 million subscribers, driven by strategic convergence campaigns and aggressive customer retention efforts. As a preferred partner to more than 400,000 MSMEs nationwide, Unifi Business continues accelerating digital adoption by providing tailor-made solutions, offering them the tools and support needed to thrive in the digital economy. Looking ahead, Unifi will further cement its role as a leader in convergence to deliver unmatched converged digital services. TM One continues to navigate the market complexities while exploring new growth opportunities. Despite decreased revenue to RM3.14 billion in FY23, its fourth quarter (Q4) FY23 results showed an increase in revenue of 17.3 per cent compared to the third quarter (Q3) FY23, driven by a surge in solution-based customer projects. Moving forward, TM One is poised to remain at the forefront of supporting and enabling the digital infrastructure for government entities and enterprises. With a focus on innovation and strategic partnerships, TM One is set to play a significant role in Malaysia’s digital transformation journey. TM Global posted a solid financial performance in FY23, with revenue rising 8.7 per cent to RM3.10 billion, primarily from an increase in international data revenue, driven by managed wavelength services for hyperscalers, alongside an uptick in domestic data services. In the domestic landscape, TM Global continues to expand 5G backhaul sites and high-speed broadband (HSBB) access coverage in accelerating digital inclusivity nationwide. Globally, it recorded a year-on-year 30Tbps bandwidth growth and delivered a mega requirement of more than 35Tbps long-term leased connectivity for US-based hyperscaler. TM Global will continue to broaden its digital infrastructure solutions and forge strategic alliances with global carriers to position Malaysia as a digital hub for the region, facilitating seamless digital connectivity and services across borders.

KUALA LUMPUR: Several key Asia-Europe sea-air hubs have recorded a strong surge in tonnages in the last few weeks, as shippers continue to seek alternative logistics solutions due to the disruptions to container shipping caused by the attacks on ships in the Red Sea. According to a recent report by WorldACD Weekly Air Cargo Trends, freight sources have reported that some Asia-Europe sea-air hubs such as Dubai, Colombo and Bangkok have been inundated with air cargo in recent weeks, as cargo owners seek to replenish stocks in Europe that have run low because containerships that would normally transit via the Suez Canal have been forced make the longer voyage around the Cape of Good Hope. Recent in-depth analysis by WorldACD Market Data can confirm that air cargo tonnages to Europe from Dubai, Colombo and Bangkok have been at significantly elevated levels this year compared with the equivalent period last year. Analysis, based on the more than 450,000 weekly transactions covered by WorldACD’s data, reveals that in the first seven weeks of 2024, all three of those sea-air hubs have seen their respective flown tonnages to Europe rise by more than 50 per cent compared with the first seven weeks of 2023, with Dubai-Europe traffic up 71 per cent, Colombo-Europe tonnages up 61 per cent, and Bangkok-Europe volumes up 58 per cent, year-on-year (YoY). But despite some reports of elevated traffic volumes to Europe via Singapore and Doha, Singapore-Europe and Doha-Europe tonnages were up, YoY, by just 10 per cent and 3 per cent, respectively, in the first seven weeks of this year. “The later timing of the Lunar New Year (LNY) this year on February 10, compared with January 22 last year, makes precise and week-by-week comparisons difficult. “Still, across the first seven weeks, there is a clear pattern of elevated tonnages to Europe from Dubai, Colombo and Bangkok. “The patterns are less clear in pricing because of multiple variables at play, including LNY and the market-wide decline in pricing compared to last year,” the report noted. And it’s unclear currently whether the elevated demand for sea-air solutions will continue significantly beyond the LNY period, with ex-Asia Pacific normally associated with a spike in demand leading up to LNY followed by a subsequent fall in tonnages and prices, it said. Tonnages in week 7 (February 12 to 18) remained up, YoY, to Europe from Dubai, Colombo and Bangkok. Dubai-Europe gains have almost tripled in week 7 to 161 per cent YoY, while the previous three weeks stood at 89 per cent, 93 per cent and 77 per cent. Colombo-Europe volumes in week 7 were more than doubled to 112 per cent, the levels of week 7 in 2023, and Bangkok-Europe tonnages also remained highly elevated at 68 per cent. Meanwhile, the global picture shows the effects of the traditional seasonal decline in demand ex-Asia Pacific in the days following LNY, with a big decline in tonnages ex-Asia Pacific pushing down overall tonnages in week 7 by a further to 10 per cent, following a similar tonnage drop in week 6. “Looking at average global rates, we see a week-on-week (WoW) drop of 6 per cent in week 7 this year, compared to an 8 per cent WoW decline in the equivalent post-LNY week (week 4) last year, consistent with a broadly similar seasonal pattern. “Those average global yield declines can be explained as a ‘mix effect’, with reduced high-yielding volumes ex-Asia Pacific causing a drop in the global average, and not by individual rates decreasing,” the report said. Expanding the comparison period to two weeks, total combined tonnages for weeks 6 and 7 this year were down by 14 per cent, globally, compared with the preceding two weeks (2Wo2W), with average rates stable and capacity down by 4 per cent. The dominant effect of LNY on these figures can be seen in the 25 per cent drop in tonnages, 2Wo2W, from the origin region Asia Pacific. Even after that 25 per cent drop, 2Wo2W, those tonnages are still at almost the same level as in weeks 6 and 7 last year (1 per cent), despite LNY occurring almost three weeks later this year, pointing towards a structural improvement compared with last year. Meanwhile, tonnages from the Central and South America origin region were also down significantly by 27 per cent, 2Wo2W, but this was principally due to a spike in flower shipments from ex-Central and South America in previous weeks ahead of Valentine’s Day on 14 February. The only origin region in weeks 6 and 7 this year to record an increase in tonnages on a 2Wo2W basis was the Middle East and South Asia (2 per cent), mainly driven by a 6 per cent rise in Europe. And Middle East and South Asia were the only origin regions to show a significant rise (11 per cent) in average rates, 2Wo2W, with Middle East and South Asia to Europe the only major intercontinental lane to show a significant rise in average prices (18 per cent) – most likely a reflection of the surge in recent weeks of Asia Pacific to Europe traffic converted to sea-air, it said. The report further said YoY comparisons show a 1 per cent decrease in total worldwide tonnages for weeks 6 and 7, combined, compared with last year, despite LNY occurring almost three weeks later this year, again suggesting a structural improvement in demand levels compared with last year. With most origin regions showing a small to moderate YoY decline, the Middle East and South Asia were again the outliers, recording a YoY rise of 22 per cent – likely a further indication of the conversion of Asia Pacific to Europe ocean freight to sea-air volumes. On the pricing side, average worldwide rates of US$2.24 per kilo in week 7 are 16 per cent below their levels this time last year, with rates from ex-Europe and ex-North America down by 32 per cent and 21 per cent, respectively. Nevertheless, average global rates remain significantly